Ramsey Company was started in 2011 when it acquired \(\$ 60,000\) from the issue of common stock. The following data summarize the company's first three years' operating activities. Assume that all transactions were cash transactions.

Required
Prepare an income statement (use the multistep format) and balance sheet for each fiscal year. (Record the transaction data for each accounting period in T-accounts before preparing the statements for that year.)

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2011 2012 2013 Purchases of inventory $24,000 $12,000 $20,500 Sales 26,000 30,000 36,000 Cost of goods sold 13,400 18,500 20,000 Selling and administrative expenses 5,500 8,200 10,100